(Finance) – The race does not stop of the title Bed Bath & Beyonda US household goods chain, driven by speculation by small investors who coordinate online. The shares have gained ground in 14 of the past 15 sessions, bringing the company’s market value more than quadruple to over $ 2 billion. Yesterday, retail traders bought a record $ 73.2 million worth of shares, bringing their total net purchases in three weeks to $ 171.4 million, according to data from Vanda Research.
The news of further bets on the title (via call options expiring in January 2023 on 1.67 million shares with an exercise price between $ 60 and $ 80) by the investor Ryan Cohenwho co-founded Chewy and is president of GameStop.
The rises of the last few sessions could lead to short squeezeas the short positions affect approximately 50% of the free float of the company, according to data from Ortex. Short squeeze is a phenomenon that occurs when the value of a financial instrument rises sharply, forcing traders who had bet that its price would drop to buy it to avoid even greater losses.
Take off again today Bed Bath & Beyondwhich stood at 23.82, with an increase of 15.35%. Operationally, expectations are for a continuation of the day in a positive sense with resistance seen in the 28.08 area and subsequently at 34.67. Support at 21.49.